Markets on May 12 : Bulls go mad (Engulfing bull)

At the opening bell, the Sensex and Nifty were in red.However, intensified buying at lower levels led to a rebound in the market in aftern...

At the opening bell, the Sensex and Nifty were in red.However, intensified buying at lower levels led to a rebound in the market in afternoon. The gains continued till the final hour of the day. The markets closed on a strong note with gains witnessed across the sectors. On the daily candlestick chart, the Sensex has formed a bullish engulfing pattern. Though the importance of this pattern is quite negligible for the reason that it is formed when the current rally is pretty mature. So, for a safer bet one should wait for a second consecutive close in the green.Respecting the demand zone around 3517, Nifty flourished 150 points from the low of the day. On upside, supply can be expected around 3750 levels. The daily momentum oscillator KST is still in the sell mode. Bulls dominated the market breadth with 714 advances and 495 declines at the NSE.

The hourly momentum cycle has turned in favour of bulls.Our short- and mid-term biases are revised up for the target of 3750 with reversal placed at 3530 for short term and 3515 for medium term.

Stocks from mid-cap and small-cap space ended with gains of 0.9% and 1.3% respectively. From the 30 stocks of the Sensex HDFC (up 8%), Wipro (up 7%), ICICI Bank (up 7%)and Bharti Airtel (up 6%) led the pack of gainers.